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Tuesday, March 13, 2012

How American Business Leaders were Converted to Keynesianism

Kenneth Lipartito gives a brief overview here about how some of America’s corporate leaders were converted to Keynesianism from 1930s:
Kenneth Lipartito, “How the Depression Made Keynesians of Capitalists: Echoes,” Bloomberg.com, March 12, 2012.
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4 comments:

  1. AnonymousMarch 13, 2012 at 3:03 PM

    Hello Lord Keynes,

    That was a very interesting article. I think that it is unfortunate that we don't see more support for progressive economics among business leaders today. What would you say is different today as opposed to the 1930s that has caused this difference in outlook?

    Thanks again and keep up the great work!

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    Replies
    1. PrateekMarch 14, 2012 at 6:29 PM

      Actually, I recall that the US Chamber of Commerce was furious about Republican plans to push for a contractionary budget and to refuse raising the debt ceiling.

      Its leader said, "We'll throw them out!" on hearing that some Congressman planned to use brinkmanship to stall an expansionary fiscal policy.

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  2. Lord KeynesMarch 14, 2012 at 9:12 AM

    John,

    Thanks for your comment.
    In 1930/1931, there were few experiments people could point to with mixed economies and stimulus, outside of war.

    Business was no doubt far more apprehensive about fiscal expansion in the early 1930s than they are today. Their mentality then was to demand balanced budgets and austerity in line with economic orthodoxy. Of course that attitude hasn't disappeared - but it is far less widespread today than it was then.

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  3. AnonymousMarch 14, 2012 at 4:39 PM

    And again I wonder: who wins in a contest for best central banker of all time, Eccles or Hjalmar Schacht?

    -Will

    ReplyDelete